Question

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $732,100 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost		Expected Activity
Machining	Machine-hours	$	209,000	10,000	MHs
Machine setups	Number of setups	$	171,100	290	setups
Product design	Number of products	$	93,000	2	products
General factory	Direct labor-hours	$	259,000	12,000	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	7,900	2,100
Number of setups	50	240
Number of products	1	1
Direct labor-hours	8,900	3,100

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)

Answer 1